Gold eases-off 3-week tops, but stays above $ 1360

Gold faced rejection once again near multi-week peak in the Asian trades this Wednesday, and dropped sharply to near 1361 region, before recovering some ground to now trade above hourly 20-SMA support.

Gold stalls 3-day rally

Currently, gold trades almost unchanged at 1363.10, having posted day’s low at 1361.77 and day’s high at 1366.33. The bullion is seen consolidating the 3-day rally and now awaits fresh impetus for the next push higher, with the negative performances on the Asian indices keeping the sentiment buoyed around the precious metal.

Gold reversed a part of yesterday’s heavy gains as the US treasury yields picked up strength and boosted the demand for the greenback across the board, eventually weighing on the USD-sensitive gold. However, overall intraday bias appears upbeat for gold amid easing Fed rate hike expectations as the US economic recovery continues to dwindle.

Meanwhile, the metal will closely eye the upcoming US ADP jobs report combined with ISM non-manufacturing PMI reading for fresh insights on the US economy and hence, further USD moves.

Gold Technical Levels                                   

The metal has an immediate resistance at 1367.30 (3-week highs) and 1370 (round number). Meanwhile, the support stands at 1353 (5-DMA) below which doors could open for 1340 (10 & 20-DMA).